Debt relief deal brings measure of relief to Greece but country still faces many hurdles

ATHENS, Greece – Greece will not be defaulting on its debts anytime soon after the cash-strapped country finally struck a deal with its international creditors.

After weeks of negotiations, Greece’s euro partners and the International Monetary Fund agreed to release a vital loan payment and a series of measures designed to reduce the country’s massive debts.

Prime Minister Antonis Samaras hailed the agreement in Brussels early Tuesday as a victory that heralds “a new day for all Greeks” but others were a bit more cautious. Newspapers were divided on whether the agreement would give the country breathing space to right its economy, or keep it trapped in years of recession and austerity.

Markets were lukewarm too, with the main stock index in Athens up a paltry 0.5 per cent.